A company using the perpetual inventory system purchased inventory worth $10,000 on account with credit terms of 1/10,n/30. Defective inventory was received, but instead of a retum, an allowance of $1,500 is given. The allowance is before the invoice is paid. The joumal entry to record the allowance would be A. \$1,500 debit to Accounts Payable and $1,500 credit to Merchandise Inventory B. \$1,485 debit to Merchandise Inventory and $1,485 credit to Accounts Payable C. \$1,485 debit to Accounts Payable and $1,485 credit to Merchandise Inventory D. 51,500 debit to Merchandise Inventory and $1,500 credit to Accounts Payable